On February 1, 2021, the ABC company transferred (sold) to a factor, with responsibility (with recourse), $ 100,000 of its accounts receivable. The factor collects a 3% finance charge from the transferred accounts and retains 5% of the accounts receivable balance for adjustments for discounts and returns. Assume the liability obligation has a fair value of $ 1,000. ABC will recognize a loss amounting to:

a. 4000

b. 3000

c. 5000

d. 9000